Barclays downgrades Auction Technology to ‘equalweight’

Barclays downgraded Auction Technology on Tuesday to ‘equalweight’ from ‘overweight’ and slashed the price target to 600p from 880p.

The bank said that while it remains constructive on the long-term structural growth of ATG, it is now more cautious on the near-term cyclicality of the business.

"Management guidance expects no further deterioration in end-markets, but after two top-line misses in a row we prefer to see proof in the numbers," it said.

Barclays added that at 17x 2024 price-to-earnings, the valuation is not cheap.

At 0935 GMT, the shares were down 4.9% at 495.50p.